www.mediafuturist.com
                       twitter.com/gleonhard




 10 new Generatives:
Selling Music in a connected W...
www.mediafuturist.com
What I do:   www.twitter.com/gleonhard




                      Photo Credits: as indicated, or via...
None of these ideas will work if...
     There is no real merit, value and
       uniqueness in what you do
   You don’t h...
Merit is
where it all
  starts.
Money
      Conversion
      Attention
Merit, Quality & Uniqueness
Making money is a
 consequence of
   Attention
    (not the other way round)
Note: there is no one-fits-all recipe!
  Not all Music is the same
 Not all Money is the same
 Not all Users are the same
...
So what is ‘Monetization’?

1.A real-cash transaction of any
  kind (often pre-consumption)
2.Revenue Sharing (usually
  p...
Getting Paid for Creation *Hat tip to Shelly Palmer

    3rd party
      pays
                              You
          ...
Expect extreme fragmentation of Music Commerce Models
2 important distinctions
 1) Monetize collectively
    Public      Broadcasting     Blanket
 Performance    & Webcasting  ...
Many other New Generatives


      Community Premium Services             Permission
   High Definition & Premium Versions...
What does ‘selling music’ really mean?
•   iTunes sales
•   CD sales
•   Songs used in Ads or Games
•   Youtube clicks?
• ...
The Music 2.0 Model           Business Models
                        Business Models
  Business Models




              ...
Music Commerce 2.0:
 don’t try to sell what is
Ubiquitous - sell what is

  Scarce
               Source: Chris Brogan
What is scarce?             What could you sell?
                              Offers that save time, and
Users’ time and ...
Offers that save time, and
   award / keep attention
  Offers that save the users
 from the overload and filter-
         ...
Sell via Twitter....?!




                         Source: Digital Media Wire
How Dell does it   Source: Paid Content.org
The search for New Generatives




®+©=$
    ?=$
=$
         Networked Model
Broadcast Model
When the browser becomes the iPod...
The Toll-Booth Challenge: how to
monetize ACCESS rather than copies




                            Source: istockphoto
From Chris Anderson’s “Free” Presentation




                                       Source: Wired.com
Free gets you to
a place where
you can get
paid.
Quote by Fred Wilson, Union Square Ventures www.avc.com
“Free” only
makes sense if   Source: Slideshare




you can
actually
convert
Charging for saving time...
Free to Paid: Examples
The future is no longer binary....



                   Source: Chris Anderson / Wired




          It’s fuzzy.
It’s not either... or!



                   versus
Hybrid Models in many variations
Music Pricing Futures
      Price of legal copy’
      Number of legal, known, engaged Users
      Premium Buyers (i.e. co...
The Mobile & Social
 ‘Consumption’ of
   Music is the
    #1 Growth
   Opportunity
Music
Products
   as
Software
on Mobile
 Devices
       Source: Gigaom
Mobile & Social: the key opportunities
The next format shift: Music as... Software!
Examples
New packages... new $$
My top 10 for ‘Monetizing Music’
    from music products: downloads, CDs etc
    from music services: streaming, bundles,
...
Direct-to-the-fan offerings
Mike Masnik (Techdirt) nailed it, last year
The process
1. Attract the right people by
   offering relevant
   Content
2. Get and hold their
   Attention, build Trust...
The Vortex Principle




Upstream Downstream

                       Source: STLPartners /
                            Tel...
The mission: get the vortex to
spin. Connect upstream and
downstream opportunities.
Upstream Revenue
       Opportunities: Some Examples
• High-Definition Content (Classical, Jazz, Concerts...)
• Concert do...
Selling copies is only the tip of the iceberg
                                 Sell downloads,
                           ...
The Internet
Please: forget most of what you know about Advertising
About Advertising and $ for Music
   Yes, it has been disappointing up to now
   Advertisers are usually 5 years behind
  ...
Yes, there are serious $$ in Advertising
• ~ $ 900 Billion USD Global
  Advertising Spend in 2012
• 30-50% shifting to digital
  media / interactive / mobile
• Opt...
Virtual Items: a huge opportunity for Music!
Where
 are the
  new
markets?
Do get into Branding you have to be a ... Brand!
Rivers of Content - big Opportunities in:
The New Generatives
  Content Sales
  Selling Context
  Selling Curation
  Selling Timeliness              5%
  Embodiment...
Action Spots (Summary)
• Mobile (Applications!)
• Advertising / Revenue Sharing (e.g. Social
  Networks, Search, Portals &...
As Steve Jobs says:



 Stay Hungry.
       Stay
      Foolish.
Thanks for your time!
email me at gerd@mediafuturist.com

   twitter.com/gleonhard
   Facebook: gleonhard
  more presentat...
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The New Generatives: Selling Music in a Connected World

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My presentation at MidemNet 2010, in Cannes France. How to monetize music when the copy is free: Defining Monetization: 1.A real-cash transaction of any
kind (often pre-consumption)
2.Revenue Sharing (usually
post-consumption)
3.Non-cash remunerations
4.Upstream payments
(Freemium)

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The New Generatives: Selling Music in a Connected World

  1. 1. www.mediafuturist.com twitter.com/gleonhard 10 new Generatives: Selling Music in a connected World
  2. 2. www.mediafuturist.com What I do: www.twitter.com/gleonhard Photo Credits: as indicated, or via iStockphoto
  3. 3. None of these ideas will work if... There is no real merit, value and uniqueness in what you do You don’t have an audience (attention) You are not willing, or not able to talk to your fans, all the time You really want to learn how to swim but are still afraid to get wet
  4. 4. Merit is where it all starts.
  5. 5. Money Conversion Attention Merit, Quality & Uniqueness
  6. 6. Making money is a consequence of Attention (not the other way round)
  7. 7. Note: there is no one-fits-all recipe! Not all Music is the same Not all Money is the same Not all Users are the same Not all Cultures are the same
  8. 8. So what is ‘Monetization’? 1.A real-cash transaction of any kind (often pre-consumption) 2.Revenue Sharing (usually post-consumption) 3.Non-cash remunerations 4.Upstream payments (Freemium)
  9. 9. Getting Paid for Creation *Hat tip to Shelly Palmer 3rd party pays You pay You I pay pay 3rd party I pay I pay pays 3rd party pays *constantly changing variations
  10. 10. Expect extreme fragmentation of Music Commerce Models
  11. 11. 2 important distinctions 1) Monetize collectively Public Broadcasting Blanket Performance & Webcasting Licenses Revenue Bundles Flat Rates Sharing 2) Monetize individually Music Sales Sync Licenses Branding Many others (coming up!)
  12. 12. Many other New Generatives Community Premium Services Permission High Definition & Premium Versions Mobile Device Applications & Software Monetize collectively Live-Concerts, Web-Casts, Virtual Shows... Flat Rates, Bundles, Revenue-Sharing
  13. 13. What does ‘selling music’ really mean? • iTunes sales • CD sales • Songs used in Ads or Games • Youtube clicks? • Spotify plays? • Last.fm plays? • Facebook or Mog ‘Like’? • Bookmarked song? • Forwarded link via email? How will you measure success?
  14. 14. The Music 2.0 Model Business Models Business Models Business Models Artist / Creator
  15. 15. Music Commerce 2.0: don’t try to sell what is Ubiquitous - sell what is Scarce Source: Chris Brogan
  16. 16. What is scarce? What could you sell? Offers that save time, and Users’ time and attention award / keep attention Curation and Selection Offers that save the users from Filtering, Context the overload and filter-failures Offers that generate trust and Trust create personal connections Offers based on unique, Meaningful experiences personal, real experiences Offers that provide for real Meaningful relationships conversations and connections
  17. 17. Offers that save time, and award / keep attention Offers that save the users from the overload and filter- failures Offers that generate trust and create personal connections Offers based on a unique, personal, real experience Offers that provide for real conversation and connections
  18. 18. Sell via Twitter....?! Source: Digital Media Wire
  19. 19. How Dell does it Source: Paid Content.org
  20. 20. The search for New Generatives ®+©=$ ?=$
  21. 21. =$ Networked Model Broadcast Model
  22. 22. When the browser becomes the iPod...
  23. 23. The Toll-Booth Challenge: how to monetize ACCESS rather than copies Source: istockphoto
  24. 24. From Chris Anderson’s “Free” Presentation Source: Wired.com
  25. 25. Free gets you to a place where you can get paid. Quote by Fred Wilson, Union Square Ventures www.avc.com
  26. 26. “Free” only makes sense if Source: Slideshare you can actually convert
  27. 27. Charging for saving time...
  28. 28. Free to Paid: Examples
  29. 29. The future is no longer binary.... Source: Chris Anderson / Wired It’s fuzzy.
  30. 30. It’s not either... or! versus
  31. 31. Hybrid Models in many variations
  32. 32. Music Pricing Futures Price of legal copy’ Number of legal, known, engaged Users Premium Buyers (i.e. converted users) 100 75 50 25 0 Was Will be
  33. 33. The Mobile & Social ‘Consumption’ of Music is the #1 Growth Opportunity
  34. 34. Music Products as Software on Mobile Devices Source: Gigaom
  35. 35. Mobile & Social: the key opportunities
  36. 36. The next format shift: Music as... Software!
  37. 37. Examples
  38. 38. New packages... new $$
  39. 39. My top 10 for ‘Monetizing Music’ from music products: downloads, CDs etc from music services: streaming, bundles, revenue sharing, flat-rates from broadcasting & public performances from licensing: synchronization / B2B deals from branding & sponsorships from live performances, concerts, events from virtual concerts etc from virtual goods (licenses) from new kinds of ‘stuff’ (merchandising etc) from direct-to-fan services
  40. 40. Direct-to-the-fan offerings
  41. 41. Mike Masnik (Techdirt) nailed it, last year
  42. 42. The process 1. Attract the right people by offering relevant Content 2. Get and hold their Attention, build Trust 3. Think Followers not Users 4. Offer added values to convert followers into $$
  43. 43. The Vortex Principle Upstream Downstream Source: STLPartners / Telco20.net
  44. 44. The mission: get the vortex to spin. Connect upstream and downstream opportunities.
  45. 45. Upstream Revenue Opportunities: Some Examples • High-Definition Content (Classical, Jazz, Concerts...) • Concert downloads (after attendance, or without) • Virtual concerts, events, clubs • Virtual goods (e.g. wallpaper, icons, greetings etc) • Fan packages (direct connection to artists, pre- releases, customized editions, special privileges etc) • Special products 2.0: compilations, audio-video packages (see SoundWalk), mobile applications etc • Next-generation physical products (e.g. 2 TB interactive & connected DVD+) • Custom-made, on-demand merchandising (see Nike+) • Many more that are yet to be invented...
  46. 46. Selling copies is only the tip of the iceberg Sell downloads, CDs... Copies Your task: to define and exploit what’s below!
  47. 47. The Internet
  48. 48. Please: forget most of what you know about Advertising
  49. 49. About Advertising and $ for Music Yes, it has been disappointing up to now Advertisers are usually 5 years behind Global spend on Ads: ~ 700 Billion USD Every large audience can be monetized Mobile, video and social media ad budgets will dramatically increase in the next 18 months It may take longer than anticipated - but will end up much larger than we thought!
  50. 50. Yes, there are serious $$ in Advertising
  51. 51. • ~ $ 900 Billion USD Global Advertising Spend in 2012 • 30-50% shifting to digital media / interactive / mobile • Opt-in, personalized, targeted Advertising = Content • Ads have always paid for Content
  52. 52. Virtual Items: a huge opportunity for Music!
  53. 53. Where are the new markets?
  54. 54. Do get into Branding you have to be a ... Brand!
  55. 55. Rivers of Content - big Opportunities in:
  56. 56. The New Generatives Content Sales Selling Context Selling Curation Selling Timeliness 5% Embodiment / Packaging 15% 20% Selling Relevance Others 15% 15% 10% 20%
  57. 57. Action Spots (Summary) • Mobile (Applications!) • Advertising / Revenue Sharing (e.g. Social Networks, Search, Portals & Communities) • Flat Rates & Blankets (fka Broadcasting, now: Telecoms, ISPs and mobile operators) • Synchronization (TV, ads, movies, games) • Branding & Sponsorships • Virtual Items • New Music Products (RBT etc) • Up-selling from ‘free’ (High Definition, AR etc) • Customization & Personalization • Virtual concerts & events
  58. 58. As Steve Jobs says: Stay Hungry. Stay Foolish.
  59. 59. Thanks for your time! email me at gerd@mediafuturist.com twitter.com/gleonhard Facebook: gleonhard more presentations at www.mediafuturist.com

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